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Changes in the distribution of male and female wages accounting for employment composition using bounds

Blundell, R.; Gosling, A.; Ichimura, H.; Meghir, C.; (2004) Changes in the distribution of male and female wages accounting for employment composition using bounds. (IFS Working Papers W04/25). Institute for Fiscal Studies: London, UK. Green open access

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Abstract

This paper examines changes in the distribution of wages using bounds to allow for the impact of non-random selection into work. We show that worst case bounds can be informative. However, since employment rates in the UK are often low they are not informative about changes in educational or gender wage differentials. Thus we explore ways to tighten these bounds using restrictions motivated from economic theory. With these assumptions we find convincing evidence of an increase in inequality within education groups, changes in educational differentials and increases in the relative wages of women.

Type: Working / discussion paper
Title: Changes in the distribution of male and female wages accounting for employment composition using bounds
Open access status: An open access version is available from UCL Discovery
Publisher version: http://dx.doi.org/10.1920/wp.ifs.2004.0425
Language: English
UCL classification: UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/2857
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